SANTA CLARA, Calif.--(BUSINESS WIRE)--Violin Memory, Inc., (NYSE:VMEM), a leader in persistent memory-based storage solutions, today provided a business update.
Recent Corporate Developments
- Violin Memory remains on track to launch additional, major product offerings in early 2014 that will strengthen the Company’s software stack and position the Company to maintain its leadership in the enterprise memory market.
- Violin Memory continues to have a robust product roadmap in place that positions the Company to take advantage of the ongoing transition to a memory-based data center and build an even stronger future for its stakeholders.
- On December 16, 2013, Violin Memory appointed Howard A. Bain III, Chairman of the Board of Directors, as its interim Chief Executive Officer. Under Howard’s leadership the Company remains focused on maintaining the operational flexibility to address the current and emerging needs of its industry, and is pursuing additional tactical initiatives to improve the overall cost efficiency of the business. Violin Memory has retained a leading technology industry focused executive search firm to assist the Board in its search to identify a permanent CEO.
Financial Condition and Outlook
- As of October 31, 2013, Violin Memory had cash and investments totaling approximately $134 million and lines of credit aggregating $58 million.
- Violin Memory also announced that it expects to achieve profitability in 2015.
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Violin Memory reiterates its long-term financial model expectations
that include:
- Gross margins between 58 percent and 62 percent;
- Sales and marketing expense that is expected to be between 24 percent and 26 percent of revenue;
- Engineering expense that is expected to be between 15 percent and 16 percent of revenue;
- General and administrative expense that is expected to be between four percent and five percent of revenue; and
- Operating margin that is expected to be between 14 percent and 16 percent of revenue.
Commentary on Litigation
- Violin Memory noted that several plaintiffs’ law firms have recently announced or filed litigation against the Company.
- The Company intends to vigorously defend itself against these claims.
- These matters will be handled in the appropriate venue and with the assistance of Orrick, Herrington & Sutcliffe LLP, a leading global law firm that has been engaged by the Company.
“Violin Memory remains focused on its fundamental strategy to drive growth and serve its customers,” said Mr. Bain. “I see many opportunities ahead and look forward to engaging with the Company’s customers, team members and shareholders in the coming weeks. Since being named interim CEO, I have been deeply impressed by our team’s commitment to our customers and products and believe we are well positioned to capitalize on the transition to a memory-based data center. While much work remains ahead, I am confident that we have the right strategy, assets and financial resources to achieve success.”
About Violin Memory
Violin Memory (NYSE: VMEM) enables businesses to access real-time information by delivering memory-based storage solutions that close the compute storage gap. Named by Gartner Inc. as the market share leader in flash-based storage systems, Violin Memory brings storage performance in-line with demanding, high-speed applications, servers and networks at disk economics. Violin Memory solutions are optimized from the ground up to leverage the inherent capabilities of flash memory, enabling performance of memory at compelling economics for business-critical applications, virtualized environments and big data in enterprise data centers. Founded in 2005, Violin Memory is headquartered in Santa Clara, California. For more information, visit www.vmem.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the launch of additional, major product offerings in early 2014, the pursuit of additional tactical initiatives to improve the overall cost efficiency of the business, achieving profitability in 2015, Violin Memory’s long-term financial model as well as Violin Memory’s position to take advantage of the transition to a memory-based data center and build an even stronger future for all of its stakeholders. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including: Violin Memory’s history of large purchases by a limited number of customers; its limited operating history, particularly as a new public company; risks associated with a transition in executive leadership; its relationship with Toshiba as its sole supplier of flash-based memory; as well as general market, political, economic and business conditions. Additional risks and uncertainties that could affect Violin Memory’s financial results are included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in the company’s quarterly report on Form 10-Q, which was filed with the U.S. Securities and Exchange Commission, and is available on the Company’s investor relations website at investor.violin-memory.com and on the SEC’s website at www.sec.gov. All forward-looking statements in this press release are based on information available to the Company as of the date hereof, and Violin Memory does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.